The Senate Committee on Capital Market and Institutions has said that municipal bonds and Sukuk offer Nigeria a sustainable pathway to funding critical infrastructure at the local government level.
Chairman of the Committee, Osita Izunaso, made this known ahead of a national stakeholders’ summit on municipal bonds and Sukuk scheduled to take place in Uyo, Akwa Ibom State.
The summit is themed “$1 Trillion Nigerian Economy: Infrastructure Financing through the Capital Market” and is expected to bring together key players from government, regulators, investors, and the private sector.
According to Izunaso, municipal bonds and Sukuk present market-based alternatives to traditional funding methods and have already been successfully deployed in several countries.
He explained that adopting these instruments in Nigeria would expand the financing options available to local governments for projects such as roads, healthcare, housing, water supply, education, and transport.
“These instruments offer sustainable, market-based alternatives to traditional funding and have been successfully deployed globally,” Izunaso said.
